MONETARY HISTORY CALENDAR March 26 – April 1

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MARCH 26

1892 – BIRTH OF PAUL DOUGLAS, ECONOMIST, US SENATOR, QUAKER
Douglas was a prominent University of Chicago economist who helped develop “A Program for Monetary Reform” in 1939 — sent to President Roosevelt as a means to end the Great Depression. More than 230 economists from 150 universities approved it without reservations while an additional 40 supported it with some reservations.
In assessing the problem of the day, the PMR states, “If the purpose of money and credit were to discourage the exchange of goods and services, to destroy periodically the wealth produced, to frustrate and trip those who work and save, our present monetary system would seem a most effective instrument to that end.” It also stated monetary systems based on a gold standard “has had…disastrous results all over the world.”
The PMR called for government creation and maintenance in the quantity of money. “Our own monetary policy should…be directed toward avoiding inflation as well as deflation, and in attaining and maintaining as nearly as possible, full production and employment.” The plan also called for eliminating fractional reserve lending – the process of banks loaning multiple times the amount of money in their possession. Back in the 1930’s the reserved requirement was 5:1. Today it’s 9:1. Some of the major banks involved in the economic collapse of 2007 had ignored this law and were loaning out 50 times their reserves. The PMR called for a 100% reserve requirement – banks could only lend the amount of money they possessed.
The document goes on, “In early times the creation of money was the sole privilege of the kings or other sovereigns – namely the sovereign people, acting through their Government. This principle is firmly anchored in our Constitution and it is a perversion to transfer the privilege to private parties to use in their own real or presumed interest. The founders of the Republic did not expect the banks to create the money they lend. “
Their plan to reduce the national debt was simply to have the government purchase government bonds with new US debt-free money.

MARCH 27

1933 – BIRTH OF HAZEL HENDERSON, FUTURIST AND ECONOMIST
“All of the intellectual models of the new economy are about cooperation, sharing and abundance.”

2009 –  BARACK OBAMA ASSURES BANKERS HE WILL PROTECT THEM
President Barack Obama’s as expressed privately to the CEOs of Wall Street assembled together in the White House: “”And I want to help. But you need to show that you get that this is a crisis and that everyone has to make some sacrifices…I’m not out there to go after you. I’m protecting you. But if I’m going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation.”

MARCH 28

2007 – QUOTE BY BEN BERNANKE, CHAIR OF THE US FEDERAL RESERVE
“At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency.”
[Note: So much for believing that the head of the Fed should be thought of as some monetary guru.]

MARCH 29

2010 – REUTERS ARTICLE, UK LAWMAKERS SEEK RADICAL, NOT RUSHED BANK REFORM
“Radical and carefully thought reform is needed to shield British taxpayers from having to bail out troubled banks again, a UK parliamentary report said on Monday.
If a bank is too complex to adopt practical and speedy wind-up plan or living will, regulators should be ready to break it up, the Treasury Committee report on banks said.”

MARCH 30

1948 – BIRTH OF MERVYN KING, FORMER GOVERNOR OF THE BANK OF ENGLAND
“Of all the many ways of organizing banking, the worst is the one we have today. Possible remedies included not just breaking up banks, but also “eliminating fractional reserve banking”—the centuries-old practice of banks taking in deposits and lending most of them out in riskier and longer-term loans.”

MARCH 31

1913 – DEATH OF J. PIERPONT MORGAN, BANKER
J.P Morgan founded one of the world’s most powerful banks and had extraordinary political influence in the U.S. The National Citizens League, funded by millions of dollars from Morgan and a few other major bankers, financed respected university professors to endorse the concept of creating a private/corporate central bank, which became the Federal Reserve Bank, created by the 1913 Federal Reserve Act. Morgan’s men were among the small number of architects of the private/corporate Federal Reserve.

1999 – “THE MATRIX” FILM RELEASE DATE
“Let me tell you why you’re here. You’re here because you know something. What you know you can’t explain, but you feel it. You’ve felt it your entire life, that there’s something wrong with the world. You don’t know what it is, but it’s there, like a splinter in your mind driving you mad. It is this feeling that has brought you to me. Do you know what I’m talking about?”  — Morpheus to Neo

2015 – PUBLISHED ARTICLE, “ICELAND LOOKS AT ENDING BOOM AND BUST WILL RADICATL MONEY PLAN”
“Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank.”
http://www.telegraph.co.uk/finance/economics/11507810/Iceland-looks-at-ending-boom-and-bust-with-radical-money-plan.html

APRIL 1

2011 – PUBLISHED ARTICLE IN BLOOMBERG: “FOREIGN BANKS TAPPED FED’S SECRET LIFELINE MOST AT CRISIS PEAK”
“Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request… The biggest borrowers from the 97-year-old discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record.”
[Note: The Fed worked very hard to keep this information secret. The amount in secret loans to US banks and corporations and foreign banks following a partial audit of the Fed in 2012 revealed a total of $16 trillion. The GDP of the United States is only $14 trillion by comparison.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR: March 19-25

grnback

MARCH 19

1860 – BIRTH OF WILLIAM JENNINGS BRYAN, SENATOR, SECRETARY OF STATE, PRESIDENTIAL CANDIDATE (DEMOCRAT/POPULIST)
Bryan had originally supported the 1913 Federal Reserve Act as Secretary of State under the Wilson administration. His position was crucial in gaining the support of many Congressional Democrats and Progressives. He later regretted his decision. “In my long career, the only thing I genuinely regret is my part in getting the banking and currency legislation enacted into law.”

2011– LIBYAN REBELS FORM CENTRAL BANK
In what may have been a first in history, the Libyan revolutionary rebels created a central bank while still fighting an established state power. The rebels designated the Central Bank of Benghazi as the new monetary authority. It would indicate how influential central bankers were over the rebels. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” said Robert Wenzel of the Economic Policy Journal.

MARCH 20

2014 – BANK OF ENGLAND ADMITS LOANS COME FIRST AND DEPOSITS FOLLOW
The Bank of England released two articles explaining the money creation process – “Money in the modern economy: An Introduction” and “Money creation in the Modern Economy” – in their flagship Quarterly Bulletin of March 2014.
‘In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood. The principal way in which they are created is through commercial banks making loans: whenever a bank makes a loan, it creates a deposit in the borrower’s bank account, thereby creating new money….”

MARCH 21

1821 – GREEK INDEPENDENCE DAY
There is an ever-declining degree of political and economic independence in Greece today. External economic institutions (i.e. International Monetary Fund, European Central Bank and European Union) have forced the nation to reduce public services and privatize/corporatize public assets – selling them off to transnational corporations to reduce costs and raise funds to pay off many loans that were known from the beginning would be unpayable. The Greek people and their Parliament are losing more of their national sovereignty as more decisions are made by undemocratic entities outside their borders.
Debt has become the more preferred weapon (rather than tanks, planes and armies) to colonize other peoples and plunder national assets and treasures – all of which profits foreign corporations, including banks.  Economic austerity, social disintegration and loss of political power results.  It’s a growing phenomenon among many emerging market nations – and has its domestic equivalent in the U.S. Rising and unpayable debts are increasingly used to justify severe budget cuts, privatization/corporations of municipal or state assets and reduce the power and authority of democratically elected councils, mayors, legislatures and governors – and by extension by We the People.

1923 – BIRTH OF ALBERT BARTLETT, PROFESSOR OF PHYSICS AT THE UNIVERSITY OF COLORADO AT BOULDER
“The greatest shortcoming of the human race is our inability to understand the exponential function.” Bartlett was a leader on sustainability and this quote is from his lecture, ” Arithmetic, Population, and Energy” he first delivered on September 19, 1969.
“Exponential growth requires exponential resources – which are finite. If we have no energy, we have no economy. The economy must grow but nonrenewal energy can’t grow since the environment is fixed.”

1975 – DEATH OF RALPH HAWTREY, BRITISH ECONOMIST, FRIEND OF JOHN MAYNARD KEYNES
“Banks lend by creating credit. They create the means of payment out of nothing.”

MARCH 22

1832 – DEATH OF JOHANN WOLFGANG VON GOETHE, GERMAN WRITER
“None are more enslaved than those who falsely believe they are free.”

MARCH 23

2009 – PUBLICATION OF PEOPLE’S BANK OF CHINA GOVERNOR ZHOU XIAOCHUAN’S PROPOSAL FOR REFORMING THE INTERNATIONAL MONETARY SYSTEM
“’In the interest of international financial stability,’ Zhou proposed the creation of a new international reserve currency that is disconnected from individual nations, issued in accordance with agreed rules and stable in value. For this purpose he proposed to modify the IMF’s Special Drawing Right (SDR), a synthetic reserve asset and unit of account created by international agreement in 1969 to supplement official reserves of member countries and to support the Bretton Woods fixed exchange rate system.”

MARCH 24

2008 – NEW YORK FEDERAL RESERVE BANK ANNOUNCEMENT IT WILL GIVE CASH TO J.P. MORGAN TO ACQUIRE BEAR STEARNS
The Federal Reserve Bank of New York announced that it would provide financing to facilitate JPMorgan Chase & Co.’s acquisition of The Bear Stearns Corporation. J.P Morgan Corporation received $29 billion from the Fed. However, the Fed never provided financing of this amount during this time to help small businesses or homeowners who were victimized by the speculative financial ventures of Bear Stearns Corporation, which led to its implosion, triggering the Great Recession.

2014 – QUOTE BY RICHARD FISHER, PRESIDENT OF THE DALLAS FEDERAL RESERVE BANK
“I don’t think there is any doubt that quantitative easing enabled the rich and the quick. It was a massive gift.”
[Note: Quantitative Easing was the Fed’s program on injecting several trillion dollars into the economy – most of which ending up going to banks and to corporations to buy back stock.]

MARCH 25

1894 – COXEY’S ARMY BEGINS MARCH
Jacob Coxey, a businessman from Massillon, Ohio organized a 500-strong “Coxey’s Army” march from Massillon (beginning on March 25, 1894) to Washington, D.C. (ending April 30) to promote federal intervention for job creation. The primary demand of this “petition in boots” was unique — the direct printing and issuance of $500 million by the Federal Treasury to employ 4 million people. Coxey’s Army proposed two bills. The first, a “Good Roads Bill”, would help farmers through $500 million issued by the federal government in legal tender notes, or greenbacks, to construct rural roads. The second, a noninterest-bearing bonds bill, would empower state and local governments to issue noninterest-bearing bonds to be used to borrow legal tender notes from the federal treasury. This money would be used to build urban libraries, schools, utility plants and marketplaces. Millions of jobs would have been created — debt-free.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR March 12-18

grnback

MARCH 12

1685 – BIRTH OF GEORGE BERKELEY, ANGLICAN BISHOP OF CLOYNE IRELAND, PHILOSOPHER
Berkeley wrote The Querest in 1735. It was written as questions, which suggested their own answers. On whether money has inherent value, he asked/wrote: “Whether money is to be considered as having an intrinsic value, or as being a commodity, a standard, a measure, or a pledge as is variously suggested by writers? On the evolution of exchange and money, “Whether in the rude original society the first step was not the exchanging of commodities, the next a substitution of metals by weight as the common medium of circulation, after this the making use of coin, lastly a further refinement by the use of paper with proper marks and signatures? And whether as it is the last so it be not the greatest improvement?  And whether money be not in truth tickets or tokens for conveying and recording such power, and whether it be of great consequence what materials the tickets are made of.”

2013 – “QUESTION FOR LIZ WARREN: HOW MANY SUBSIDIES DOES A ZOMBIE BANK NEED” PUBLISHED ARTICLE
“[T]he Fed is currently subsidizing the cost of funds for the US banking industry to the tune of about $90 billion per quarter or $360 billion annually.”  http://www.zerohedge.com/contributed/2013-03-12/question-liz-warren-how-many-subsidies-does-zombie-bank-need

MARCH 13

1943 – DEATH OF J.P MORGAN, JR, BANKER
JP (Jack) Morgan was the son and grandson of bankers who headed J.P. Morgan & Co., one of the most powerful banks in the nation. He struck a deal with the British and French governments to be the sole munitions and supplies purchaser during World War I, which earned the bank $30 million. The bank was so heavily tied to the British and French governments that it was charged Morgan politically pressured the US government to enter the war against Germany in order to rescue its loans.

MARCH 14

1782 – BIRTH OF THOMAS BENTON, US SENATOR, MISSOURI
“I object to the renewal of the charter of the Bank of the United States because I look upon the bank as an institution too great and powerful to be tolerated in a government of free and equal laws.  Its power is that of the purse, a power more potent than that of the sword, and this power it possesses to a degree and extent that will enable this bank to draw to it too much of the political power of this Union, and too much of the individual property of the citizens of these States.  The money power of the bank is both direct and indirect.”

1881 – INAUGURAL ADDRESS OF PRESIDENT JAMES GARFIELD
“The chief duty of the National Government in connection with the currency of the country is to coin money and declare its value.”

MARCH 15

1767 – BIRTH OF ANDREW JACKSON, SEVENTH PRESIDENT OF THE UNITED STATES
“I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the Bank. You tell me that if I take the deposits from the Bank and annul its charter. I shall ruin ten thousand families. That may be a true, gentleman, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out and, by the Eternal, I will rout you out.” Jackson successfully opposed re-chartering the private “Second Bank of the United States.” He vetoed a bill in 1832 renewing the bank’s charter (license).

1985 – OHIO GOVERNOR DICK CELESTE DECLARES S&L “HOLIDAY”
Cincinnati, Ohio based Home State Savings Bank, a Savings & Loan, was about to collapse in March 1985 over its shady operations. As depositors lined up to withdraw their savings in a classic “run” on the bank’s branches, Celeste declared a bank “holiday.” He ordered all Savings & Loans closed in an attempt to stem the panic. Only those that were able to qualify for membership in the Federal Deposit Insurance Corporation were allowed to reopen. Claims by Ohio S&L depositors drained the state’s deposit insurance funds.

2003 – QUOTE BY CHRISTOPHER MARK, AUTHOR OF THE GRAND DECEPTION: THE THEFT OF AMERICA AND THE WORLD, PART III
“Welcome to the world of the International Banker, who like the famous film, The Wizard of Oz, stands behind the curtain of orchestrated national and international policymakers and so-called elected leaders.”

MARCH 16

1938 – HOUSE RESOLUTION (HR) 7230 INTRODUCED
John William Wright Patman, Democratic Congressman 1938-1978 and Chairman, Committee on Banking & Currency, introduces a bill to nationalize the Federal Reserve System.
“The Federal Reserve is a total moneymaking machine.  It can issue money or checks, and it never has a problem of making its checks good, because it can obtain the $5 or $10 bills necessary to cover its check simply by asking the Treasury Department’s Bureau of Engraving to print them.” 1964

2013 – YOUTUBE UPLOAD OF TALK BY BEPPE GRILLO ON MONEY AND DEMOCRACY
Grillo is head of the “5 Star Movement” in Italy — a left-wing populist movement seeking political power. They just might prevail in national elections later in 2017. This guy understands money and how to democratize its creation and distribution. “Whom does the money belong to? Who does its ownership belong to? To the State, fine, so to us, we are the State. “You know that the State doesn’t exist, it is only a legal entity. WE are the state, the money is ours. “Then tell me one thing: if the money belongs to us, why do they lend it to us?”

2016 – DUTCH PARLIAMENT ADOPTS MOTIONS TO INVESTIGATE MONEY CREATION
“On March 16th, the Dutch Parliament’s plenary assembly discussed the possibility of transitioning towards a sovereign monetary system and adopted two motions committing the government to carry out further research.
“About one year ago, more than 100,000 Dutch people signed a citizens’ initiative to make state issued digital cash into the political agenda of the Dutch Parliament. This success was the result of a fruitful cooperation between our sister organisation Ons Geld (translated ‘Our Money’) and a theatre group called ‘The Seducers (De Verleiders) which showed a play called “Taken by the bank“ which explains money creation…
“[T]he initiative was debated at the House during a three hours plenary session on March 16th. The financial crisis has shown that leaving the creation of money to commercial financial institutions from lending leads to an unstable financial system. ‘The financial system is like a house of cards about to collapse,’ said spokesman for Our Money George van Houts.”
http://positivemoney.org/2016/03/dutch-parliament-adopts-motion-to-investigate-money-creation/

MARCH 17

1947 – JOHN MCCLOY BECOMES PRESIDENT OF THE WORLD BANK
The World Bank would do more to expand US banking globally than any other treaty, agreement, or entity that came before it. McCloy was the World Bank’s second President. He had previously been Assistant Secretary of War during WWII.

2017 – ST. PATRICK’S DAY
“Nobody can borrow themselves out of debt no more than you can drink yourself sober.”
– Byron Dale, monetary reformer and rancher.

MARCH 18

1869 – PASSAGE OF US LAW THAT ALL US MONETARY NOTES WOULD BE EVENTUALLY CONVERTED TO SPECIE
Specie means money in the form of coins rather than paper notes. Bankers hated Lincoln’s Greenbacks, which were debt-free and inflation-free US money created to avert financial crisis during the Civil War. Following Lincoln’s death, bankers pressured Congress to eliminate Greenbacks, base money creation on precious metals (preferably gold) and, if additional funds were needed by the government to borrow it from banks at interest. Basing the money supply on gold or silver meant that the money supply could only increase when the supply of gold or silver increased – regardless of the growing population or an expanding economy. A pure metal-based money system has historically resulted in depressions – not enough money to meet the economic needs.

1993 – DEATH OF KENNETH BOULDING, ECONOMIST, PROFESSOR, PEACE ACTIVIST, QUAKER
“Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist. [Note: the same goes for debt.]

———————–

Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR March 5 – 11

lincolngback

MARCH 5

1997 – SPEECH BY EARL OF CAITHNESS IN THE HOUSE OF LORDS, UK
“[I]t is also a good time to stand back, to reassess whether our economy is soundly based. I would contest that it is not, not for the reason to which the noble Lord, Lord Eatwell, alluded, which is that it is the Government’s fault, but our whole monetary system is utterly dishonest, as it is debt-based. ‘Dishonest’ is a strong word, but a system which by its very actions causes the value of money to decrease is dishonest and has within it its own seeds of destruction…Governments…have abdicated their responsibility for producing new money and controlling the money supply so that now they are marginalized…The next government must grasp the nettle, accept their responsibility for controlling the money supply and change from our debt-based monetary system. My Lords, will they? If they do not, our monetary system will break us and the sorry legacy we are already leaving our children will be a disaster.”

MARCH 6

1933 — FRANKLIN ROOSEVELT ISSUES EXECUTIVE PROCLAMATION 2039 DECLARING A BANK “HOLIDAY”
The “holiday” meant that all banks would be closed from March 6-10 to prevent further runs by depositors. Bank failures were a result of earlier speculative investments and banks loaning out more money than they actually possessed (called “fractional reserve banking”). When too many people came to a bank at the same time wanting their deposits, the banks collapsed since they lacked sufficient assets. The bank “holiday” was meant to restore confidence in the banking system.

1926 – BIRTH OF ALAN GREENSPAN, CHAIRMAN OF THE US FEDERAL RESERVE SYSTEM
“I guess I should warn you, if I turn out to be particularly clear, you’ve probably misunderstood what I’ve said.”
“Do you feel that your ideology pushed you to make decisions that you wish you had not made?”
Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact…Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief,” he told the House Committee on Oversight and Government Reform.

2013 – TESTIMONY OF US ATTORNEY GENERAL ERIC HOLDER BEFORE SENATE JUDICIARY COMMITTEE ON PROSECUTING LARGE BANKS
“I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy.” This from the chief law enforcement officer of a justice system that has practically abolished the constitutional right to trial for poorer defendants charged with certain crimes. It is not too much to say that Wall Street has virtually, if not actually, captured the federal government.

MARCH 7

322 BC – DEATH OF ARISTOTLE
“Money exists not by nature but by law” (Ethics, 1133)
Aristotle understood that no natural substance qualifies as money. Rather, it’s governments that determine the definition of money.

1976 – DEATH OF WRIGHT PATMAN, DEMOCRATIC CONGRESSMAN FROM TEXAS, CHAIRMAN OF US HOUSE COMMITTEE ON BANKING & CURRENCY (1965-75)
“When our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far. I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money… I am saying to you in all sincerity and with all the earnestness that I possess, it is absolutely wrong for the Government to issue interest-bearing obligations. It is not only wrong; it is extravagant. It is not only extravagant, it is wasteful. It is absolutely unnecessary.
“Now, I believe the system should be changed. The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now, under our system, we will sell bonds to commercial banks and obtain credit from those banks.
“I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study.
“We have what is known as the Federal Reserve Bank System. That system is not owned by the Government. Many people think that it is, because it says `Federal Reserve’. It belongs to the private banks, private corporations. So we have farmed out to the Federal Reserve Banking System that is owned exclusively, wholly, 100 percent, by the private banks — we have farmed out to them the privilege of issuing the Government’s money. If we were to take this privilege back from them, we could save the amount of money that I have indicated in enormous interest charges.”

MARCH 8

1702 – BIRTH OF WILLIAM III, KING OF ENGLAND
He agreed in 1694 to give up his sovereign power as King to print or coin his nation’s own money to a new corporation, the Bank of England (It was a weakened monarchy).

MARCH 9

1933 – CONGRESS PASSES EMERGENCY BANKING ACT
Among its provisions, the Act gave the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States. It also allowed for closing insolvent banks. The Act empowered the President during time of war or other emergency to regulate or prohibit the exporting, hoarding, melting or earmarking of gold and silver coin and bullion. All US residents were compelled to pay or deliver all gold (be it coins, bullion or certificates) to the Secretary of the Treasury. They were paid the market value for their gold in dollars. Shortly afterwards, the government significantly raised the price of gold, which in effect, reduced the value of the dollar.

MARCH 10

1933 – LAST DAY OF “BANK HOLIDAY” DECLARED BY PRESIDENT ROOSEVELT
The “holiday” meant that all banks would be closed from March 6-10 to prevent further runs by depositors. Bank failures were a result of earlier speculative investments and banks loaning out more money than they actually possessed (called “fractional reserve banking”). When too many people came to a bank at the same time wanting their deposits, the banks collapsed since they lacked sufficient assets. The bank “holiday” was meant to restore confidence in the banking system. At the conclusion of the “holiday,” 5% of all banks were unfit to continue business, many others only were permitted to accept deposits, while others permitted only a certain percentage of deposits to be withdrawn. Slightly more than 50% of all banks reopened with no withdraw restrictions.

2000 – EVE OF DOTCOM BUBBLE CRASH
The combined values of stocks on the NASDAQ was at $6.71 trillion on March 10. The market began crashing the next day. By March 30, the NASDAQ was valued at $6.02 trillion. It dropped to $5.78 trillion by April 6. Nearly a trillion dollars worth of stock value had evaporated in less than a month. What goes boom eventually goes bust in an economy with private control of the money system

MARCH 11

1893 – PUBLICATION OF “PANIC CIRCULAR” BY THE AMERICAN BANKERS ASSOCIATION [Note: Many individuals, including several US public officials, claimed they received the document. The American Bankers Association denied its authenticity].
The document calls on member banks to incite a financial panic to prevent greater public controls of banks, to counter increased public sentiment toward government-issued money and as a means to oppose silver (as opposed to gold) being used as a backing for currency.
The alleged document stated,
“You will at once retire one-third of your circulation (your paper money) and call in one-half of your loans. Be careful to make a monetary [emergency] among your patrons, especially among influential businessmen…
“The future life of national banks as fixed and safe investments depends upon immediate action, as there is an increasing sentiment in favor of Government legal-tender notes and silver coinage.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR February 26 – March 4

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FEBRUARY 26

1913 – CONCLUSION OF PUJO COMMITTEE HEARINGS IN CONGRESS
A committee of Congress, headed by House Banking and Currency Committee Chair Arsene Pujo, investigated the Wall Street banking “Money Trust from 1912-1913. The Committee’s report identified a financial network of Wall Street bankers connected by 341 interlocking directorships held in 112 corporations valued at more than $22 billion connected to the Morgan and Rockefeller empires, which exerted identifiable control over the US monetary system and economy.

Paradoxically, the report resulted in the push for a Federal Reserve Act, which, of course, legitimized and shielded control of the money system and economy by the financial elites.

FEBRUARY 27

1844 – DEATH OF NICHOLAS BIDDLE, PRESIDENT OF SECOND NATIONAL BANK
Biddle threatened to cause a depression if President Andrew Jackson did not re-charter the Bank. The privately owned Second Bank was chartered in 1816. President Jackson did not sign the bill to renew the charter. “This worthy President thinks that … he is to have his way with the Bank. He is mistaken…[opposition] can only be broken by the actual conviction of exiting distress in the community… Our only safety is in pursuing a steady course of firm restriction [of the money supply] – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the Bank.” The result of the contraction of the money supply was a financial panic followed by a deep depression. (Edward Kaplan, The Bank of the United States and the American Economy)

1867 – BIRTH OF IRVING FISHER, MATHEMATICAL ECONOMIST
“If two parties instead of being a bank and an individual, were an individual and an individual, they could not inflate the circulating medium by loan transaction; for the simple reason that the lender could not lend what he didn’t have as banks can do … Only commercial banks and trust companies can lend money that they manufacture by lending it.” 100% Money (1935)

FEBRUARY 28

2015 – ONLINE PUBLICATION OF “ENDING HOMELESSNESS SAVE MONEY; MONETARY REFORM AND PUBLIC BANKS SHOULD FUND THIS NOW” BY CARL HERMAN
“Given that all 50+ professional studies conclude we save money by ending homelessness, all US communities should enact policies to do so.
Given that all communities have problems with funding public programs, even those that save money in the long-term like infrastructure and education, we should also enact monetary reform…”
http://www.washingtonsblog.com/2015/02/ending-homelessness-saves-money-monetary-reform-public-banks-fund-now.html

MARCH 1

1781 – RATIFICATION OF ARTICLES OF CONFEDERATION, THE FIRST US CONSTITUTION
“The Articles of Confederation and Perpetual Union” of the thirteen States was ratified and in force on this date. The Articles was the first Constitution of the United States, preceding our current constitution by several years. The Articles granted the Federal Government the authority to issue money and determine its value if nine states agreed.

MARCH 2

1810 – BIRTH OF POPE LEO XIII
“On the one hand there is the party which holds the power because it holds the wealth, which has in its grasp all labor and all trade, which manipulates for its own benefit and its own purposes all the sources of supply, and which is powerfully represented in the councils of State itself.  On the other side there is the needy and powerless multitude, sore and suffering. Rapacious usury, which, although more than once condemned by the Church, is nevertheless under a different form but with the same guilt, still practiced by avaricious and grasping men…so that a small number of very rich men have been able to lay upon the masses of the poor a yoke little better than slavery itself.” — Pope Leo XIII statement on usury, 1891

1876 — US SILVER COMMISSION (TO STUDY THE CRIME OF 73) REPORT RELEASED ON WHAT CAUSED THE 1873 DEPRESSION
The Commission concluded that the depression was caused by a reduction of the money supply. They compared the 1873 Depression to the deflation of the Roman era. “The disaster of the Dark Ages was caused by decreasing money and falling prices… Without money, civilization could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish.  Falling prices and misery and destitution are inseparable companions. It is universally conceded that falling prices result from the contraction of the money volume.” The Report suggested that the Dark Ages ended when paper money was issued, “It is suggestive coincidence that the first glimmer of light only came with the invention of bills of exchange and paper substitutes…”

MARCH 3

1863 – LEGAL TENDER ACT PASSED
Congress authorizes the Government to print no more than $400,000 million Greenbacks to pay for the Civil War. This was interest-free and debt-free money. The Lincoln Administration did not want to borrow money from corporate banks to pay for the war.

1865 – NATIONAL CURRENCY ACT AMENDED BY CONGRESS
The act amended the National Currency Act of 1864. State banks were no longer permitted to issue bank notes (currency).

1884 – JULLIARD V. GREENMAN (110 U.S. 421) SUPREME COURT DECISION
US Supreme Court ruling upholding the legality of US Government issued money (Greenbacks) created following the Legal Tender Acts of 1862 and 1863. The Court ruled that the government possessed the authority under the Constitution to issue a national currency and that that currency could be used to pay debts.

2003 – WARREN BUFFET, SECOND RICHEST PERSON ON EARTH, IN HIS ANNUAL LETTER TO BERKSHIRE HATHWAY SHAREHOLDERS
“Derivatives are financial weapons of mass destruction.”

MARCH 4

1789 – US GOVERNMENT UNDER NEW CONSTITUTION BEGINS OPERATION
The Constitution replaced the Articles of Confederation as the overarching legal document of the nation. The new Constitution provides the federal legislature the sole power “[t]o coin money [and] regulate the value thereof.” (Article 1, Sec 8). The Government subsequently abdicated its responsibility when it gave the Federal Reserve and private banks the power to create money literally out of thin air…as debt.

1837 – FAREWELL ADDRESS OF PRESIDENT ANDREW JACKSON
Jackson was most responsible for not renewing the charter of the misnamed Second Bank of the United States, a private institution. In his farewell address when leaving office (Presidents used to be sworn in during the beginning of March for decades, now it’s mid January), he stated, “The immense capital and peculiar privileges bestowed upon it [(Second National Bank of the United States] enabled it to exercise despotic sway over the other banks in every part of the country. From its superior strength it could seriously injure, if not destroy, the business of any one of them that might incur its resentment; and it openly claimed for itself the power of regulating the currency throughout the United States. In other words, it asserted (and it undoubtedly possessed) the power to make money plenty or scarce at its pleasure, at any time and in any quarter of the Union, by controlling the issues of other banks and permitting an expansion or compelling a federal contraction of the circulating medium, according to its own will.” This is something to keep in mind during this period when Democrats at the local level hold their “Jackson” or “Jefferson-Jackson” annual events.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/

MONETARY HISTORY CALENDAR February 19-25

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FEBRUARY 19

1473 – BIRTH OF NICOLAUS COPERNICUS, MATHEMATICIAN AND ASTRONOMER
“Among the countless evils that bring about the demise of whole states, these fours are surely the most critical: internal discord, high mortality, infertility of the soil, and deterioration of money.
The first three are so apparent that hardly anyone would contest them. The fourth evil, however, stemming from the nature of money, is noticed only by those few who think deeply, for it causes the states to crumble not at one fell swoop, but gradually, near invisibly.”

1869 — CONGRESS PASSES BILL PROHIBITING USING UNITED STATES NOTES AS SECURITY OR COLLATERAL IN ANY LOAN MADE THROUGH A NATIONAL BANKING ASSOCIATION
“That no national banking association shall hereafter offer or receive United States notes or national bank notes as security or as collateral security for any loan of money…and any national banking association offending against the provisions of this act shall be deemed guilty of a misdemeanor and upon conviction thereof in any United States court having jurisdiction shall be punished by a fine…” Approved February 19 1869
This was one of many attacks by bankers on the Greenbacks — public money issued by the Lincoln Administration. Public control of the money system meant banks couldn’t control it. Banking corporations wanted, as they had done prior to and after Greenbacks, to print money out of thin air and then charge interest on top of it (otherwise known as “debt money”). Banks pressured Congress in a variety of ways to delegitimize Greenbacks. This law was one such way.

FEBRUARY 20

1842 – BIRTH OF GEORG FRIEDRICH KNAPP, AUTHOR OF THE “STATE THEORY OF MONEY”
“Money is a creature of the Law…” (page 1)
“The most important achievement of economic civilizations, the chartalism (using tokens for money) of the means of payment.” (page 92)

1878 – REIGN OF POPE LEO XIII BEGINS
“On the one hand there is the party which holds the power because it holds the wealth, which has in its grasp all labor and all trade, which manipulates for its own benefit and its own purposes all the sources of supply, and which is powerfully represented in the councils of State itself.  On the other side there is the needy and powerless multitude, sore and suffering. Rapacious usury, which, although more than once condemned by the Church, is nevertheless under a different form but with the same guilt, still practiced by avaricious and grasping men…so that a small number of very rich men have been able to lay upon the masses of the poor a yoke little better than slavery itself.” — Pope Leo XIII statement on usury.

2017 – PRESIDENT’S DAY — NATIONAL HOLIDAY IN THE US
In honor of today, here’s what a few Oval Office occupants said about money and banking:
–    John Adams: “All of the perplexities, confusion, and distress in America arises, not from the deflects of the Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.”
–    Thomas Jefferson: “The bank mania is one of the most threatening of these imitations. It is raising up moneyed aristocracy in our country, which has already set the government at defiance, and although forced at length to yield a little on this first essay of their strength, their principles are unyielded and unyielding. They have taken deep root in the hearts of that class from which our legislators are drawn…”
–    Andrew Jackson: “If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations.”
–    Abraham Lincoln: “The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity.”
–    James Garfield: “He who controls the money supply of a nation controls the nation.”

FEBRUARY 21

2013 – RELEASE OF NEW VIDEO ON MONETARY REFORM IN CANADA
Monetary Reform – a simple solution to some major problems affecting everyone in society. In this short interview, William Abram explains how money is created and some solutions that will benefit everyone. http://www.positivemoney.org/2013/02/new-monetary-reform-video-from-canada/

FEBRUARY 22

1732 — BIRTH OF GEORGE WASHINGTON, FIRST PRESIDENT OF THE UNITED STATES
Washington’s image is on the $1 bill, which has lost over 90% of its value since 1900. It’s estimated that $100 in 2012 equals the purchasing power of $3.48 in 1900. That’s a 96.4% decline. Inflation due to money printing for spending on unproductive purposes has been the major cause. The private Federal Reserve System has been the US central bank during for most of this period (since 1913).

1878 – FOUNDING OF GREENBACK-LABOR PARTY
The National (Greenback-Labor) Party was formed at a convention in Toledo, Ohio. Their platform declared that reform of the monetary system was necessary in order to “secure to the producers of wealth the results of their labor and skill, and muster out of service the vast army of idlers who, under the existing system, grow rich upon the earnings of others, that every man and woman may, by their own efforts, secure a competence, so that overgrown fortunes and extreme poverty will seldom be found within the limits of our Republic.”

FEBRUARY 23

1744 –    BIRTH OF MAYER AMSCHEL ROTHCHILD, FOUNDER OF THE BANKING DYNASTY
Purported quote: “Permit me to issue and control the money of a nation, and I care not who makes its laws.”

FEBRUARY 24

1809 – BIRTH OF ELBRIDGE SPAULDING, US LAWYER, BANKER AND POLITICIAN
“Why then should we go into Wall Street…begging for money? Their [private bank] money is not as secure as Government money…I am unwilling that this government should be left in the hands of any class of men, bankers or moneylenders, however respectable or patriotic they may be.
The Government is much stronger than any of them. All the gold they possess would not carry on the Government for ninety days. They issue promises to pay, which, if Congress does its duty, are not half as secure as United States Treasury notes based on adequate taxation upon all the property of the country.”

FEBRUARY 25

1791 – CREATION OF THE FIRST BANK OF THE UNITED STATES
The federal government issued a 20-year charter (very unusual at the time since most corporate charters, or licenses, were issued by states) to create the first national private bank. The bank’s paper money was accepted for taxes. Eighty percent of its shares were privately owned — among these 75% were foreign owned (mostly by the English and Dutch). The bank was modeled on the Bank of England. It’s main proponent, Alexander Hamilton, argued in support: “Suppose that the necessity existed…for obtaining a loan; that a number of individuals came forward and said, we are willing to accommodate the government with this money (which we have or can raise) but in order to do this it is indispensable that we should be incorporated as a bank…and we are obliged on that account to make it a consideration or condition of the loan.” In other words, Hamilton was saying the private/corporate bank would be more than happy to give the government loans if the government grants the private/corporate bank the power to create money! Jefferson, Madison and others opposed it. Jefferson said, “This institution (the Bank of England) is one of the most deadly hostility against the principles of our Constitution…suppose an emergency should occur…an institution like this…in a critical moment might overthrow the government.” The bank had an enormous impact on the economy early on. Within 2 months of its creation, it flooded the market with loans and banknotes and then suddenly called in many of its loans. The result was the first US securities market crash — what became known as the “Panic of 1792” – the first of many panics, recessions and depressions due to the private/corporate control of our money system.

1862 – LEGAL TENDER ACT PASSED
A bill authorizing the issuance of $150 million non interest-bearing United States notes (called at that time “Greenbacks”). Congress would later grant $300 million more in US notes. This was interest free US money. The administration of Republican President Abraham Lincoln wanted to avoid the nation going into debt borrowing money from private/corporate bankers to pay for the Civil War. Greenbacks were not bonds or notes or any other promises to pay “money” at some future time. They were money. Since they were not borrowed, they didn’t add to the national debt. What later made them inflationary was they were used to pay for war  – which didn’t produce or add anything productive to the economy to offset the added money supply. The bill contained an “Exception Clause”, which stated that Greenbacks could not be used to pay the interest on the national debt, or to pay taxes, excises or import duties.

1863 – NATIONAL BANKING ACT PASSED
It provided for the national chartering of banks by the federal government. This replaced state charters – many of which contained much more rigid and democratic provisions. The Act in numerous ways standardized banking across the country. The act established National Banking Associations, the office of the Comptroller of the Currency and a system of national chartered banks with control over all of them coming from Washington. The new banks were given virtually tax-free status. In doing so, it entrenched what some have called “structural fraud” of the banking system – creating money out of thin air and charting interest on it.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt? Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice. This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini, Deb Jose and Greg Coleridge helped in its development. Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, email monetarycalendar@yahoo.com
To see the calendar year-to-date, go to https://monetarycalendar.wordpress.com/
A second historical calendar, the REAL Democracy History Calendar, in many ways complements this calendar. For information, go to https://realdemocracyhistorycalendar.wordpress.com/about/